‘For the fight ahead’, Haryana begins consolidating funds

According to letter issued Friday by the office of Additional Chief Secretary, Haryana, who is also the custodian of HSFSL, the step is being taken “in view of the pandemic COVID-19 challenge and to fight financial distress situation posed by the coronavirus.”

The HSFSL was incorporated on June 15, 2018 and is state government company. (Representational Photo)

CONSOLIDATING its financial wealth, the Haryana government has directed all its departments to transfer their surplus funds, current & savings accounts money and all the fixed deposits maturing in future to Haryana State Fiscal Services Limited (HSFSL).

According to letter issued Friday by the office of Additional Chief Secretary, Haryana, who is also the custodian of HSFSL, the step is being taken “in view of the pandemicCOVID-19 challenge and to fight financial distress situation posed by the coronavirus.”

The letter has been marked to all administrative secretaries, heads of departments, deputy commissioners, registrar of universities and all managing directors, CEOs, cooperative institutions, statutory bodies and all state organisations.

All surplus funds as well as future FDs will be placed with HSFSL and will be invested by the NBFC (non-banking financial corporation). The amount lying in savings and current accounts has been asked to be placed immediately with the State, says the letter.

Secretary of State Pollution Control Board, S Narayan confirmed having received the letter. “We understand these are tough and unprecedented times. This is for a larger cause. Moreover, the department should not face any issues as we are taking out our money from one bank and putting it in another and as per my understanding, we will be free to withdraw it as and when there is a need.” According to Narayan, such a decision was also taken in late nineties and reversed later. “We think the same will happen this time as well. I think process will be reversed once pandemic is dealt with”, he said.

Meanwhile, a senior state official, who did not want to be named, said, “This decision is bound to create autonomic issues. They will have all power over our money. Why else would they demand even our current account and savings account money? They have assured us that we can withdraw money whenever we want, but the letter has also said that money is being used for COVID-19 relief and investments. So if there is no money left or all money is invested, how will we be able to make withdrawals. Once it goes to State, it will become theirs instead of ours.”

The HSFSL was incorporated on June 15, 2018 and is state government company, which was set up to manage surplus funds of public sector enterprises and state departments. The government had floated a NBFC in February for this fiscal year and had submitted application in this regard to RBI.

The company was set up in an attempt to maximize yield on funds and give loans to public sector enterprises